Daimler Ready to Exit Li-Tec Battery Joint Venture?

FEB 27 2014 BY ERIC LOVEDAY 6

Current Smart ED - Powered by Li-Tec - Not Tesla Like the Last-Gen Smart ED

Current Smart ED – Powered by Li-Tec/Evonik – Not Tesla Like the Last-Gen Smart ED

Daimler AG is supposedly in the process of cutting losses from its Li-Tec battery joint venture with Evonik Industries.

Li-Tec's "Endless POwer" Slogan in Jeopardy as Daimler Seems Ready to Exit Joint Venture

Li-Tec’s “Endless Power” Slogan in Jeopardy as Daimler Seems Ready to Exit Joint Venture

It’s believed that Daimler will eventually part ways with Evonik in regards to this Li-Tec JV.

Evonik supervisory board member, Michael Vassiliadis, told Bloomberg:

“Evonik is unsettled because Daimler’s not sure how it will proceed while technology is improving.  You’d have to ask Daimler what the future of Li-Tec is.”

The problem is that Li-Tec simply doesn’t have the necessary funding to keep pace with the rapidly evolving technology in the automotive battery world, and with Daimler saying that it’s time to cut its losses, it’s our belief that Li-Tec will be sold or shuddered.

Back in June of 2013, Daimler started weighing its option for Li-Tec.  Daimler has considered bringing in an additional partner and has even looked for possible buyers.

So far, only one offer was submitted.  LG Electronics put in a bid of 1 euro ($1.37) for Li-Tec. A number than is just slightly lower than the €1 billion figure they were looking for 9 months ago.

Meanwhile, Daimler says it’s “convinced” of Li-Tec’s technological expertise, according to Bloomberg.

Evonik holds 50.1 % of Li-Tec, with Daimler at 49.9%.

Source: Bloomberg

Categories: Battery Tech, Mercedes

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6 Comments on "Daimler Ready to Exit Li-Tec Battery Joint Venture?"

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Huffster

Cutting ties to then partner with Tesla gigafactory I suspect.

Rick Danger

Eric, “shuttered” not “shuddered” 🙂

Aatheus

This is unfortunate news, if true. Unless Daimler finds a new partner, this can only hurt the Smart ED.

“So far, only one offer was submitted. LG Electronics put in a bid of 1 euro ($1.37) for Li-Tec.”

LOL:
That’s like saying we’ll buy you a cheap cup of coffee to discuss, but your investment is worth nothing.

My favorite part of the story is the converting of the €1 into USD…because that is important.

Definitely someone at LG has a sense of humor though with that bid.

brotherkenny

Most of the battery companies will fail because they have to. Trying to tie any significance to the failure of any single battery company is meaningless. Some people will do better and make money and others won’t. Car companies are no genius’ and so it is not a surprise that Daimler can’t pick the winners either. Too bad for them, but then maybe they shouldn’t have so many fat old “yes men” standing around trying to look important. Perhaps they should propagate a merit based system of career advancement.